Congress renews focus on tax reform ahead of August Recess
Last week, the top Republican Senator on the Finance Committee called for public input on tax reform ahead of the August congressional recess. Senate Finance Committee Chairman Orrin Hatch (R-UT) released a
letter soliciting stakeholder recommendations as Congress and the White House continue their push to overhaul the tax code.
“Members from both parties have acknowledged the shortcomings of our current tax system and the need for meaningful reforms to encourage economic growth and alleviate many of the burdens imposed on hardworking taxpayers,” said Chairman Hatch. “As this effort moves forward, it is important that everyone – including Members of Congress, administration officials, and stakeholders – manage expectations and remain willing to compromise on ideal policy preferences.”
Although various Senate Committees have heard testimony on tax policy during this year’s push for reform, the Senate Chairman has delayed in releasing his own overhaul plan. Chairman Hatch’s request for feedback comes on the one-year anniversary of the House leadership’s tax overhaul blueprint titled “
A Better Way: Our Vision for a Confident America.” As discussed in a recent
NAHMAnalysis on tax reform and the Low-Income Housing Tax Credit (LIHTC), the blueprint proposes a number of significant rate reductions and broad simplifications to the tax code, but remains silent on the LIHTC.
The proposal has mostly taken a backseat to healthcare and budget debates, but House Speaker Paul Ryan (R-WI) this week attempted to revive momentum in a well-publicized speech on his tax plan. Meanwhile, a high-level overview of White House tax reform goals, released in April, left out Speaker Ryan’s controversial border adjustment tax, focusing instead on simplifications and a significantly reduced corporate tax rate of 15%. So far, the proposals have earned little support on the Hill from either party.
The Trump Administration has promised a unified tax plan in early September, which could address a number of unknowns, including paying for generous business and individual tax cuts, conforming to or expanding the 10-year existing time limit on tax reforms, appeasing fiscal conservatives calling for revenue-neutral reform, and coalition-building with moderate Democrats in the Senate.
House Committee advances flood insurance reforms
Under the leadership of Chairman Jeb Hensarling (R-TX), the House Financial Services Committee this week continued
debate on the National Flood Insurance Program (NFIP). Because houses in NFIP-designated flood plains are federally-required to purchase flood insurance, the rental and real estate market alike could be impacted by a lapse in the program or by changes to insurance rates.
The Committee this week advanced a plan consisting of seven separate bills seeking to reform and reauthorize the program, which expires on September 30, 2017. A
bill brought by Congresswoman Nydia Velazquez, whose New York district suffered in the aftermath of Hurricane Sandy, earned bipartisan support in its efforts to improve oversight and disclosure. H.R. 2875 doubles claims coverage costs from 30,000 to 60,000, and also allows the Federal Emergency Management Agency (FEMA) the discretion to invest the money before a disaster to mitigate infrastructure damage, representing a significant departure from standard after-the fact insurance models.
Separately, Representative Ed Royce (R-CA) introduced a
bill requiring community flood mitigation action in areas repeatedly damaged by floods, which account for a small percentage of the country but a large percentage of the NFIP’s claims. While Royce’s bill was seen by some lawmakers as an unfunded mandate on vulnerable communities, a number of bipartisan amendments softened the bill’s prescribed consequences of failing to mitigate flood risk at the community level and required FEMA to take into account mitigation funding availability before imposing sanctions on the community.
Referring to Royce’s bill, Representative Velazquez said, “Hurricane Sandy made clear the importance of floor insurance in helping homeowners recover and demonstrated the need to preserve the [NFIP] for the long-term. But Sandy also made clear that the program needed improvements. Encouraging community-wide mitigation plans is one of the most meaningful ways we can improve the NFIP for the long-term.”
The House Committee’s NFIP reform and reauthorization package also included efforts to establish monthly payments for insurance premiums under a lowered fee structure, upgrade national flood-mapping to accurately reflect risk, and reduce risk- and insurance-related regulations on commercial properties. Meanwhile, bipartisan leadership in the Senate Banking, Housing, and Urban Affairs Committee have begun negotiations on the federal program amidst a handful of separate reform bills introduced to the Senate.
HUD Assistant Secretaries nominated as confirmations process continues
This week Anna Maria Farias was nominated to serve as Assistant Secretary for Fair Housing and Equal Opportunity at HUD. Originally from Texas, Farias is currently the Chair of the Board of Regents at Texas Woman’s University. She previously served at HUD in various capacities, including as Senior Counsel to former Secretary Martinez and as Deputy Assistant Secretary for Grant Programs (CDBG). She has also held position at the Department of Education and the Department of Labor.
Before earning her law degree from Temple University in Pennsylvania and serving as a Fellow in Harvard’s JFK School of Government, Farias grew up in the Crystal City Housing Projects in Texas. Upon returning home as the Executive Director of the Housing Authority, Farias was one of the first to agree to live in the housing developments during her term as Executive Director. Farias’ leadership was recognized with her induction into the Texas Woman’s Hall of Fame in 2000. Her nomination requires confirmation in the Senate Committee on Banking, Housing, and Urban Development.
Neal J. Rackleff, also an attorney from Texas, was formally nominated to serve as Assistant Secretary of Community Planning and Development at HUD. Rackleff was previously the Director of the City of Houston’s Housing and Community Development Department; during his tenure, the Department focused on financing multifamily units, reconstructing hurricane-damaged homes, and combatting homelessness.
Separately, the nomination of Pamela Patenaude to serve as HUD’s Deputy Secretary, the number two position at HUD, received a favorable recommendation in the Senate Banking Committee following her hearing. A Senate floor vote has not yet been scheduled.
